Gas and electric furnaces we replace
Gas furnaces in Austin homes usually sit in a hall closet, a garage, or the attic. An electric furnace is an air handler with electric heat strips. In either setup, the AC’s indoor coil sits on top of or inside the furnace, and the blower moves cooled air in summer too. That’s why a furnace swap and an AC swap are often the same job.
Replacing the furnace and AC together
When the furnace and AC are both old, we replace them together as one matched system, with one permit and one install. We size the new furnace’s blower to move the air the new AC needs. Austin Energy’s AC rebate requires replacement of the condenser, the furnace or air handler, and the coil. If the furnace is younger and working well, it can stay while we change the coil and outdoor unit.
Gas, venting, and drain checks
High-efficiency gas furnaces vent through plastic pipe and produce water, so they need a condensate drain. Older standard furnaces vent through a metal flue. Before we leave, we check the gas connection for leaks, the venting, the drain, and the burner and blower operation. The city’s final inspection checks the work too.
Furnace replacement cost in Austin
Angi’s Austin HVAC page (updated April 2026) publishes a range of $2,500 to $6,500 installed in Austin for a new furnace, depending on efficiency and size. Our cost guide puts furnace prices beside the AC and full-system ranges.
Furnace rebates
Texas Gas Service’s energy efficiency rebate program has expired, so there’s no gas furnace rebate from the gas company right now. Austin Energy’s rebates cover ACs and heat pumps and don’t cover furnaces.
Furnace questions
How long does a furnace last?
A National Association of Home Builders study (2007) put furnace life at 15 to 20 years. InterNACHI’s life-expectancy chart lists a range of 15 to 25 years.
Can I replace my furnace with a heat pump?
Yes, a heat pump outside and an air handler inside can replace both your AC and furnace. You can also keep the gas furnace as backup heat with a heat pump in a dual-fuel setup.
Does a furnace replacement need a permit?
Yes, in Austin, replacing mechanical equipment requires a City mechanical permit and a final inspection. Georgetown’s permit rules cover replacing gas and mechanical systems, and our permits list covers the other nearby cities.